Radcom (NASDAQ:RDCM) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Radcom (NASDAQ:RDCM) posted its quarterly earnings data on Tuesday, May 19th. The technology company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.01, FiscalAI reports. The company had revenue of $18.59 million during the quarter, compared to analysts’ expectations of $18.61 million. Radcom had a net margin of 17.18% and a return on equity of 11.68%.

Here are the key takeaways from Radcom’s conference call:

• Q1 revenue rose 12% year over year to $18.6 million, while non-GAAP operating income increased to $3.7 million and operating margin expanded to 20.1%. Management said this reflects strong operating discipline and reaffirmed full-year 2026 revenue growth guidance of 8%-12%.
• The company signed a multi-year renewal with a tier 1 customer and expanded RADCOM ACE into more AI-driven use cases. Management said the broader deployment should deepen automation, speed issue resolution, and strengthen its role in 5G network assurance.
• RADCOM launched RADCOM Neura, an AI agent suite for telecom operators, and added a second certified ServiceNow connector. The company positioned these releases as concrete monetizable products that can be sold as standalone use cases, bundles, or through partner-led motions.
• Management highlighted growing traction with ecosystem partners such as ServiceNow, AWS, NVIDIA, Infosys, and others. They said partner-led selling is expanding reach, shortening adoption barriers, and helping pipeline growth without proportional increases in direct sales and marketing spend.
• The balance sheet remained strong, with $108.4 million in cash and short-term deposits at quarter-end. Cash flow was slightly negative in the quarter, mainly because of annual bonus payments.

Radcom Stock Up 0.8%

NASDAQ RDCM opened at $14.66 on Wednesday. The firm has a market cap of $245.41 million, a price-to-earnings ratio of 19.55 and a beta of 0.75. Radcom has a twelve month low of $10.41 and a twelve month high of $16.74. The business has a 50-day moving average price of $13.56 and a 200-day moving average price of $12.90.

Analyst Ratings Changes

RDCM has been the topic of a number of recent research reports. Needham & Company LLC reaffirmed a “buy” rating and issued a $18.00 price objective on shares of Radcom in a research note on Wednesday, February 11th. Wall Street Zen lowered Radcom from a “strong-buy” rating to a “buy” rating in a research note on Saturday, March 21st. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $18.00.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of RDCM. Raymond James Financial Inc. bought a new stake in Radcom during the 2nd quarter valued at $34,000. Lazard Asset Management LLC increased its holdings in shares of Radcom by 171.1% in the second quarter. Lazard Asset Management LLC now owns 8,136 shares of the technology company’s stock valued at $110,000 after purchasing an additional 5,135 shares during the last quarter. Bank of America Corp DE raised its holdings in Radcom by 93.8% in the 3rd quarter. Bank of America Corp DE now owns 9,014 shares of the technology company’s stock valued at $131,000 after buying an additional 4,364 shares during the period. Jump Financial LLC acquired a new position in shares of Radcom in the second quarter worth $165,000. Finally, Boothbay Fund Management LLC acquired a new position in Radcom in the third quarter valued at approximately $211,000. Institutional investors own 48.32% of the company’s stock.

Radcom Company Profile

Radcom Ltd. (NASDAQ: RDCM) is a provider of cloud-based service assurance and analytics solutions designed to help communications service providers monitor and optimize the performance of their networks. Its flagship product, RADCOM ACE, delivers real-time visibility into service quality, subscriber experience and network resource utilization across traditional and virtualized architectures. By combining packet-level data collection with advanced analytics and machine-learning algorithms, Radcom enables carriers to detect, troubleshoot and resolve network and service issues before they impact end users.

Founded in 1991 and headquartered in Tel Aviv, Israel, Radcom has evolved from an early vendor of network testing equipment into a specialist in end-to-end assurance for voice, data, video and next-generation services.